AFR reported on the 22nd of June in its Market Wrap section the following;

"Coca-Cola Amatil maintained its fall from market favour yesterday, investors slashing another 11 cents, or 3.4%, from the beverage maker to its close at $3.11 The stock has fallen almost 15% in less than a fortnight on investor concerns about its valuation. One leading food and beverage analyst said the stock still traded at a premium to the food and beverage sector, although he did not consider it a premium stock. The company has paid a high price for offshore assets that are not performing, while there is also sagging demand for its product, the analyst said".

But the newspapers rarely tell you the complete story, newspapers normally tell us what we want to hear (what sells) rarely what we need to know (& if we need to hear it, readers are usually the last to know anyway - especially as regards financial news). Opinions are to be ignored.

Standard & Poor's announced changes on the 21st of June to their S&P/ASX indices. Alterations are generally made only on liquidity or market capitalisation issues, not company performance, but it is estimated some 1/5th (not more) of our market is managed by index funds; an investment style of simply picking stocks based on their percentage valuation within any index. As you may have guessed, CCL was dropped from the S&P/ASX 20 at the expense of Westfield Trust.

We are currently investigating how this info is disseminated so we can bring it to you earlier. Stay tuned. Knowledge of those changes is important to investors. Follow this yourself where you can, it will effect the chart pattern.

You will find though, I believe, the trend is already established well before the index change announcement. And of course, the trend can become self fulfilling. The lower the price goes, the lower the market cap of the stock, the more pressure on index funds to sell. I do not buy against this trend, no matter how cheap the stock looks on fundamentals.